Loss and Damage

“Loss and damage” refers to the impacts of climate change that are not avoided by mitigation or prevented by adaptation — from sudden-onset disasters to slow-onset processes such as sea-level rise, including non-economic losses. The Fund for responding to Loss and Damage (FRLD) was established as an operating entity of the financial mechanism of the Convention and the Paris Agreement and operationalised at COP28; it has its own Board, with the World Bank selected to host its secretariat and to act as trustee. It sits alongside the Santiago Network, which channels technical assistance rather than finance.

Why it matters in the room

It is a category of its own, separate from adaptation finance, and conflating the two causes real confusion. The live questions are capitalisation, contributions, eligibility and how quickly funds can actually reach the countries and communities concerned.